Venture funding just for women

CBS.MarketWatch.com

LOS ANGELES (CBS.MW) -- Diamonds are a girl?s best friend, but sometimes we just need cash. Cash for a new business. Cash to turn an existing small business into something really big.

Jennifer Openshaw

If a lack of capital (cash) is all that?s standing between you and the realization of your dream, know this: A) You are not alone; and B) Help is on the way!

In January, the National Women?s Business Council (NWBC) and the Forum for Women Entrepreneurs (FWE) will be holding the nation?s first venture capital forum for women. Women will be able to present their business ideas and plans to venture capitalists who will be looking to put their money behind women-owned businesses.

Why a forum for women? Because even though women-owned businesses represent the fastest-growing segment of the U.S. economy, obtaining venture capital has always been much tougher for women than for men. Less than 2 percent of venture capital funds goes to women-led businesses.

Start-up businesses pose high
risks, so VCs are interested only in businesses that have the potential of offering very
attractive returns on their investments.
Businesses in the right markets. Ideally, your business should be in an &quot;emerging growth sector&quot; of technology. Areas cited by Millman include biotechnology, medical devices and anything having to do with computers, communications and telecommunications, including software, hardware and peripherals.

Businesses with a strong plan. For your plan to be persuasive to a VC firm, it needs to explain how your business will achieve leadership in your target market, generate revenues, and provide a satisfactory return on the capital invested -- all within a two-to-five-year time frame.

Businesses with skilled personnel. No matter how attractive a business idea may be, most investors really invest in the people who are responsible for executing it. Be sure you have assembled a team of individuals with the skill sets needed to make your venture successful.

The right stage of development. Your business doesn?t need to be making a lot of money to qualify for Springboard 2000. Investors are interested in companies at the seed (earliest) stage, first stage and second stage of investment. If you?re in the seed stage or first round of investment, you should have developed the basic idea and business strategy, assembled your core team of individuals, and perhaps invested some cash (your own or that of friends or relatives) into your venture. You should also know what you would do if you had another $1 million or so to spend on developing or growing your business.

If all of the above fits your situation, you can participate in the forum by submitting an application. This first forum is open to women-owned businesses on the West Coast. But similar forums will be held on the East Coast in Washington, D.C. in April and in Boston in the Fall of 2000.

Although Oct. 15 is the application deadline, those who apply by Sept. 17 will receive priority consideration. For application forms and other information, visit the Springboard 2000 Web site.

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